Remittances to Kenya rose slightly in September, increasing by 0.2 percent to $419.6 million (Sh54.3 billion), according to the latest data from the Central Bank of Kenya (CBK). The inflows reflect continued strong support from Kenyans abroad for families and investments back home.

Cumulative remittances for the 12 months to September 2025 grew by 7.6 percent to $5.08 billion (Sh657.9 billion), up from $4.72 billion (Sh611.9 billion) recorded in the same period last year.

CBK projects remittances will reach a record $5.24 billion (Sh678.7 billion) by the end of 2025, before rising further to $5.56 billion (Sh720.1 billion) in 2026.

The United States remains the leading source of Kenya’s remittance inflows, with much of the money going towards education, healthcare, and family support, according to WorldRemit.

These inflows have been instrumental in stabilizing the Kenyan shilling, supported by diversified foreign exchange sources such as diaspora remittances, horticulture and tea exports, and offshore banking. Confidence in the economy has also improved following a recent credit rating upgrade by S&P Global Ratings.

CBK’s latest market survey shows that 88 percent of banks and 87 percent of non-bank respondents expect the shilling to remain stable or strengthen, buoyed by robust forex inflows from tourism, exports, and diaspora remittances, as well as sufficient reserves.

“Some respondents expect moderate pressure mainly from increased imports,” CBK Governor Kamau Thugge said. “Remittances remain a key source of foreign exchange earnings and continue to support the balance of payments.”

The current account deficit is projected to stand at 1.7 percent of GDP in 2025 and 1.8 percent in 2026, reflecting strong import growth alongside resilient exports and remittance inflows.

This deficit is expected to be more than offset by financial account inflows, leading to a balance of payments surplus of $674 million (Sh87.3 billion) in 2025 and $229 million (Sh29.7 billion) in 2026.

As a result, Kenya’s foreign exchange reserves are projected to rise to $10.77 billion (Sh1.39 trillion) in 2025 and $10.99 billion (Sh1.42 trillion) in 2026, up from $10.09 billion (Sh1.31 trillion) in 2024. As of October 15, reserves stood at $12.07 billion (Sh1.56 trillion) equivalent to 5.3 months of import cover, well above the CBK’s minimum requirement of four months.

Remittance inflows hit a record Sh666.7 billion in 2024, up from Sh586 billion in 2023, cementing their position as Kenya’s largest source of foreign exchange.

In August, CBK, in partnership with the Kenya National Bureau of Statistics (KNBS) and Financial Sector Deepening Kenya (FSD Kenya), launched the first-ever Remittances Household Survey (RHS) to gather data on international remittance flows.

The 2025 RHS, conducted between July and September, sought information on the amount, usage, and cost of remittances, including those sent through informal channels and in-kind transfers. The findings are expected to guide CBK’s policy development aimed at enhancing remittance flows and improving financial inclusion.